In a groundbreaking move, Cuba's Minister of Energy and Mines, Vicente de la O Levy, announced at a press conference on Wednesday that the government is contemplating the unprecedented step of allowing private sector involvement in the generation of electricity for the National Electric System. This comes as a response to the severe energy crisis gripping the island.
During his update on the ongoing electricity crisis, the minister described the situation as "extremely acute and critical," with a power generation deficit exceeding 2,000 MW.
"We are now discussing not only the issue of fuel but also the inclusion of private management forms that could participate in our national electric system," stated De la O Levy.
He elaborated on potential scenarios, mentioning, "There was discussion about setting up a generator group that could produce power for the people. It's available but requires fuel. Well, there's that possibility too."
Although still under discussion, this potential opening marks a significant shift from the historically state-controlled system.
To incentivize private participation, the government has standardized the purchase price of electricity fed into the grid, moving from an asymmetric pricing model—three pesos for state entities and six pesos for private entities—to a uniform rate of 90 pesos per kilowatt-hour for all participants.
The minister identified the immediate cause of the crisis as a fuel shortage. From December 2025 until just weeks before the conference, Cuba had not received any fuel shipments, except for a 100,000-ton crude oil donation from Russia that was depleted by early May.
"That happened almost four months after a fuel ship last arrived in Cuba," De la O Levy emphasized.
Compounding the fuel scarcity is the shutdown of the Felton thermoelectric plant in Holguín due to leaks in the boiler and a broken bearing in one of its regenerative air heaters. The minister warned that without intervention, "the unit would have been completely damaged."
The system currently operates without fuel reserves as summer approaches, a season characterized by heightened electricity demand.
Transitioning Towards Energy Independence
De la O Levy highlighted energy transition as "the path to our energy sovereignty," aiming to increase renewable energy's share in the electric grid to 15% by the end of 2026, up from 3% last year.
The government is also working on installing 200 MW of distributed energy storage across four sites and progressing on the completion of the Herradura 1 wind farm in Las Tunas, with all equipment now in place.
A new energy transition law is being drafted, set to be presented to the National Assembly in 2026. The day before the conference, the minister and a team of experts discussed 18 specific energy transition projects with President Miguel Díaz-Canel, each with an assigned leader.
The regime's long-term plan aims to achieve 24% renewable energy by 2030, 40% by 2035, and 100% by 2050, a stark contrast to the current system that leaves millions of Cubans without power for hours daily.
Understanding Cuba's Energy Crisis and Transition
What is causing the energy crisis in Cuba?
The primary cause of the energy crisis is a severe shortage of fuel, exacerbated by the shutdown of a major thermoelectric plant due to technical issues.
How is the Cuban government addressing the energy crisis?
The government is considering allowing private sector involvement in electricity generation and is working on increasing the share of renewable energy in the national grid.
What are the future goals for renewable energy in Cuba?
Cuba plans to achieve 15% renewable energy by 2026, 24% by 2030, 40% by 2035, and ultimately 100% by 2050.